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Lowe's (LOW) Outperforms Broader Market: What You Need to Know
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In the latest market close, Lowe's (LOW - Free Report) reached $245.51, with a +1.7% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.08%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 2.64%.
Prior to today's trading, shares of the home improvement retailer had gained 12.96% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.42% and the S&P 500's loss of 0.44% in that time.
Market participants will be closely following the financial results of Lowe's in its upcoming release. The company plans to announce its earnings on August 20, 2024. In that report, analysts expect Lowe's to post earnings of $3.98 per share. This would mark a year-over-year decline of 12.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.02 billion, down 3.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.23 per share and revenue of $84.59 billion, which would represent changes of -7.35% and -2.07%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Lowe's holds a Zacks Rank of #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 19.74. For comparison, its industry has an average Forward P/E of 16.6, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 2.61.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lowe's (LOW) Outperforms Broader Market: What You Need to Know
In the latest market close, Lowe's (LOW - Free Report) reached $245.51, with a +1.7% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 1.08%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 2.64%.
Prior to today's trading, shares of the home improvement retailer had gained 12.96% over the past month. This has outpaced the Retail-Wholesale sector's loss of 1.42% and the S&P 500's loss of 0.44% in that time.
Market participants will be closely following the financial results of Lowe's in its upcoming release. The company plans to announce its earnings on August 20, 2024. In that report, analysts expect Lowe's to post earnings of $3.98 per share. This would mark a year-over-year decline of 12.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.02 billion, down 3.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.23 per share and revenue of $84.59 billion, which would represent changes of -7.35% and -2.07%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lowe's. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Lowe's holds a Zacks Rank of #3 (Hold).
Digging into valuation, Lowe's currently has a Forward P/E ratio of 19.74. For comparison, its industry has an average Forward P/E of 16.6, which means Lowe's is trading at a premium to the group.
Also, we should mention that LOW has a PEG ratio of 1.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Building Products - Retail industry had an average PEG ratio of 2.61.
The Building Products - Retail industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 171, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.